AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.

Plain English Breakdown

The official source material does not provide specific details on how much income is exempted or if there will be additional funding for the tax exemption.

Tax Exemption for Military Reserve Members

This act creates a tax exemption in Delaware for income earned by members of the National Guard and reserve components during their federally required training.

What This Bill Does

• Creates an exemption from state income tax for compensation received by members of the National Guard or reserve components of the Uniformed Services of the United States for federally required annual training, drills, field exercises, or inactive duty training.
• The exemption applies to taxable years beginning after December 31, 2026.

Who It Names or Affects

• Members of the National Guard and reserve components of the Uniformed Services of the United States
• Delaware taxpayers

Terms To Know

federally required training

Training that members of the military reserves are legally obligated to complete.

inactive duty training

Scheduled training periods for reserve members who are not on active duty but must maintain readiness.

Limits and Unknowns

• The bill does not specify how much income is exempted, only that it applies to the compensation received during required military service.
• It is unclear if there will be any additional funding provided for this tax exemption.

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.
This Act provides an exemption from state income tax for the amount of income or compensation received for federally required annual training, drills and field exercises, or inactive duty training by an individual who is a member of the National Guard or a reserve component of the Uniformed Services of the U.S. The bill’s provision applies to taxable years beginning after December 31, 2026.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Carson & Sen. Hoffner

Reps. Bush, Gray, D. Short, Yearick, Hilovsky; Sens. Hocker, Mantzavinos, Pettyjohn, Richardson, Wilson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 405

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1106, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1106. Modifications [For application of this section, see 83 Del. Laws, c. 338, § 2]

.

(b)

Subtractions. —

There shall be subtracted from federal adjusted gross income:

(13) For tax years beginning after December 31, 2026, compensation and retirement benefits received for National Guard or reserve component of the Uniformed Services of the United States annual training, weekend drills, field exercises, or inactive duty training.

SYNOPSIS

This Act provides an exemption from state income tax for the amount of income or compensation received for federally required annual training, drills and field exercises, or inactive duty training by an individual who is a member of the National Guard or a reserve component of the Uniformed Services of the U.S. The bill’s provision applies to taxable years beginning after December 31, 2026.